The German economy is the strongest in Europe, with high levels of employment and low levels of unemployment hovering around 5%. Germany has seen record levels of employment and low levels of unemployment in recent years. In 2020, as a result of the COVID-19 pandemic, the labor market deteriorated significantly, industries such as tourism and catering suffered, but the situation is already beginning to improve in 2022 / 2023.
The industrial, service and construction sectors are particularly strong. Many multinational companies are headquartered in Germany, which attracts professionals from various industries. Germany is the automotive hub of Europe, in addition for example, the well-known electric car brand Tesla has also opened its factory in Germany. Currently, many employers are finding it difficult to hire enough specialists, a situation that will continue year after year, especially in sectors such as industry, healthcare, IT sector, high tech, logistics and construction. Staff shortages have prompted German employers to hire workers from abroad.
Many people from central and southern Europe emigrate to Germany to find work, but not all are skilled workers with good language skills. Emigrants from central and southern Europe who come to Germany to find work often seek employment in sectors such as industry, logistics, construction and services. In industry, workers are often hired in production, as assemblers, machine operators, warehouse workers and drivers. In logistics as couriers, postal workers, drivers for various categories of vehicles and warehouse workers. In construction as bricklayers, electricians, roofers, handyman. In services as caregivers/supervisors of the elderly, cooks, waiters, cleaners.
Salaries in Germany vary depending on factors such as education, experience, and industry. According to data from the Federal Employment Agency, the average gross salary for all employees in Germany in 2021 was €4,100 per month. However, this varies greatly depending on the occupation and sector. For example, the average salary for a doctor is €8,900 per month, while the average salary for a salesperson is €2,200 per month. Additionally, salaries tend to be higher in the western states of Germany and lower in the eastern states.
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The number of German high school graduates who want to study science or technology is falling. In order to maintain the high position of the industrial country, German companies intend to hire specialists from abroad. Referring to the statements of deans of technical universities, the interest in STEM (Science, Technology, Engineering and Math) studies has fallen more than twice over the last 5 years.
The report of the German Economic Institute in Cologne (Köln) from 2022 shows that in April 2022 there was a shortage of about 300,000 STEM (Science, Technology, Engineering and Math) specialists. In the 21st century, the demand for innovation is huge, in order to stay in the game on the global market, German companies will need a large number of specialists. The question remains whether German companies will acquire these employees in sufficient numbers. Failure to do so will undermine the competitiveness of the German economy. Or even more companies will be forced to relocate their operations elsewhere.
Demographic changes have a great impact on this situation. Over the last decade, the number of students from other countries who have come here with their families has increased in Germany. Insufficient support coupled with the language barrier doesn't help with the STEM issue.
While specialists from European Union countries (Poles, Spaniards, Greeks, Italians, Czechs, French, etc.) are employed in Germany on equal terms, qualified emirates from outside the European Union encounter numerous bureaucratic obstacles. After many signals from entrepreneurs, the German government is now trying to streamline the immigration process for skilled workers from outside the European Union. Changes are already visible, the number of specialists from India working in Germany in engineering or IT has grown from around 4,000 to 25,000, i.e. more than 6 times. Also in Germany, specialists from North Africa are appearing more and more often, e.g. from Tunisia, Egypt and Morocco. But the opinion that all specialists in the world want to work in Germany is not true.
German companies cannot wait, the lack of the necessary workforce may mean lower productivity and the risk of losing positions to increasingly competitive players such as China, South Korea, Japan. Therefore, Germany must be attractive to specialists in many respects. Because people also go to other regions of the world, which are also an interesting place to work and live.
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